Fort Walton Beach Council minutes — 09-24-1990 Special — reading text

problems are bigger in front of them than that kind of detail. and the budget problems this year are minuscule compared to what they are going to have 2 or 3 years down the road. He would like they to going see prepare for how are to them, and he would like to see that exercise start with this budget. He said this budget is basically 8 or 9% increase over last years expenditure, and most of it is salaries and 5% of that increase; therefore, a large percent of the increase is salary increases. He said some of the expenditures not addressed in the budget are about to hit because it is all mandated in the comprehensive plan. and that is what they have to address in terms of how to prepare for that; the only thing a budget does is who we tax to get more revenue, that' s all that makes a difference because it' s going to be spent at one point in time. He would like Council to be able to deal as nearly as possible with a belt tightening budget because they must recognize that the next 3 or 4 years are going to get worse than this and they must figure out how to make it get closer. The Finance Director said they cannot lock at revenue by itself, have look at expenditures, it is a they to combination of the two things. He said their job is to try to it to Council the best they can, try and present answer questions; there are 1987, 1988, 1989 and 1990 figures. and they cannot compare exactly on a audit because certain things show up different on an audit; because certain things they treat as money going out but it is not expenditures.  13 9- 24- 90 90/ 91 BUDGET ( CONT.) Mr. Wyatt asked the City Manager if there was any action they can take that affects the enterprise, whether it is a loss or a gain. The City Manager said yes, the enterprise is part of the budget; the Water Fund right now is doing all right, the Sewer Fund is losing money. Mr. Wyatt said then some action they could take in terms the Sewer Fund could correct part of the deficit I of some in the Enterprise Fund; but the major area they have to deal with is the General Fund, the $ 1.3 differential this year. The Finance Director said after they find out the total cost of the sewer plant, they will bring a recommendation as to the source for funding and any kind of rate it takes to fund the project; and they are going to recommend creating an Enterprise Fund for garbage. Mr. Wyatt said there is a $ 1. 3 million problem to deal with in the General Fund, and they may be able to work hard to find solutions, but they will still have a 700, 000 problem this year, and that is all they will be able to do this year, if they are successful, without major cuts to the service major cuts level and without to thedepartment, and leave department service the status quo. they can attack the budget differential about $ 600, 000. He asked the Finance Director if they keep a deficit of $ 700, 000, how many more years there would be money. The Finance Director said approximately 7 years or less it would be gone. Wyatt said the Mr. trend is they are going in that direction. and suggested Council challenge itself to try and figure out a way to stop the deficits because it is going to get worse. He would be comfortable in saying he would like to see the salaries capped at $ 6. 7 million this year because he thinks it can be done and still give the raises. He would like to see them attack the revenue areas they have already talked about, get the difference in revenues, not taxes; and that is still with a 6 mill tax rate, and an increase in garbage rate. He said they can do all the department studies they want, but they have less than ten years to solve the problem. Mr. deVaux suggested biting the bullet and say a 10% across the board cut. Mr. Wyatt said he thought the challenge is, not to cut, but to solve the big picture problem; the cuts may come after the study. The Finance Director said this year, which is finishing I this with at week, different income the revenue to there things; offset current and was each trend, expenses; a considerable drop in revenue on there are certain other; expenditures and the somewhere you will have to look there are only five sources of overall picture is, revenue, water, sewer. garbage, taxes, and the golf course; and somewhere down the line